Peaks and troughs – a year in recruitment

As 2024 draws to an end, here at Osborne Thomas we’ve been reflecting on what’s been another changeable year within the recruitment landscape. It started with the realisation that we had entered a mini recession at the back end of 2023, local authority recruitment appeared somewhat patchy in the first quarter of 2024.

There were fewer bid and tender processes emerging from procurement frameworks and an apparent drop in opportunities and subsequent direct awards. The Office for National Statistics (ONS) interestingly released some statistics highlighting employment within local government was an estimated 2.00 million in June 2024, a decrease of 1,000 (0.1%) compared with March 2024, and a decrease of 5,000 (0.2%) compared with June 2023.

The ONS figures coupled with our own observations meant that at the time the focus for local authorities was retention (incidentally, a trend that is ongoing). Increased pressures upon local government better servicing their local communities with less resource had resulted in concentrating on initiatives focusing on holding on to key and highly skilled employees through up-skilling, increasing job quality and emphasis upon wellbeing and occupational health. All very strategically sound, and commendable.

Hitting the second quarter of 2024 there was a definitive flurry of activity and urgent hiring needs across all levels and disciplines – the significant majority coming from direct awards off of frameworks – and a shift towards the creation of local authorities creating their own preferred supplier lists from which to select their recruitment partners. And to corroborate these outcomes a number of key procurement frameworks were reporting that as many of 70% of tenders, bids and proposals were indeed resulting in direct awards, many of them coming from hiring managers, not HR or resourcing teams.

Similarly, off-contract spend spiked. Undoubtedly the flurry came about due to an early General Election being announced and a highly anticipated change in government. And this rising trajectory of recruitment needs continued right up until election day in July when, indeed, the inevitable was confirmed; Labour were taking control and the potential of a more positive future for local government and support of it created a buzz of anticipation, and in some corners, excitement.

Our own observation of the heightened recruitment activity came about through the emergence of more high-volume requirements, whether as a result of senior leadership team restructures, and/or transformation and devolution programmes.

But local authority recruitment suddenly quietened again, the remainder of the summer and well into October seemingly hitting another trough as we awaited the Budget. What was needed was greater clarification from our new government and their plans for support and funding.

And we were not disappointed; the Budget provided that further boost for optimism. It painted a brighter picture ahead for local government with the promise of increased funding for key services such as housing, social care and education, and commitment towards further enhanced transformation and devolution.

While we were waiting for the publication of the devolution White Paper (it does feel like we have done a lot of waiting) it became very clear through reviewing a now – once again – re-energised local government recruitment market, and numerous conversations with our customers, recruitment intentions for the New Year are high. And high-volume recruitment requirements through direct awards and off-contract opportunities are very much leading the way again.

For us, this shift towards direct awards and off-contract activity has been no surprise. With the significant volume of suppliers on all of the procurement frameworks, both recruiting and hiring managers must be thinking that they do not have the time to review and assess copious bids and proposals, hence direct award via already known and trusted suppliers is extremely appealing. And, for executive recruiters like ourselves, we are finding we are spending less time writing bids and proposals and more time developing direct customer relationships and wins.

Trends such as these are likely to keep changing, however. With the impending procurement review – now scheduled for early 2025 (more waiting), we are anticipating greater legislation with regards to direct awarding and off-contract spend. Some would say this has to be welcomed – for reasons of greater clarity, inclusion and fairness. Others will be urging on the side of caution and the fear of further uncertainty.

Whatever is to come in the world of local government, we are very used to relentless change and – if honest with ourselves – rather good at it. As we always do, we will keep battling on.

We wish you a very happy Christmas and new year from Osborne Thomas. 

Kate Wilson is development manager at Osborne Thomas